Free licensing to boost aggregate odds for success |
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| Authors: | Gilad Sorek |
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| Affiliation: | Department of Economics, University at Buffalo, State University of New York, Amherst, NY 14260, USA |
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| Abstract: | We show how technological leader gains from inviting an entrant into R&D competition to improve over existing patented technology, as the entrant takes complementary R&D effort, and the demand for both current and improved technologies is increasing with aggregate probability for successful quality improvement. |
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